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University Bulletin
Undergraduate Degree Programs

These course descriptions are not being updated as of August 1, 2016. Current course descriptions are maintained in LionPATH.

Risk Management (R M)

R M 320W Risk Management and Insurance (3) Goals and methods of risk management. Commercial insurance and alternative risk transfer (ART) methods in addition to the characteristics of insurance markets and intermediaries used by risk managers.

R M 320W Risk and Decisions (3)

Most tough decisions involve risk. Smart risk-taking requires special analytical problem solving skills and careful consideration of the relevant data. In this course, you will learn how to conceptualize decisions involving risk, how to analyze your choices, how to estimate the risk, and how to communicate and defend your analysis to others. The skills and tools you will learn come from economics, probability, statistics, and game theory. The focus will be on how the tools from these fields are applied to real world business decisions in risky environments. The concept of risk diversification will be dsicussed under both independent and correlated risks. Decision rules such as expected value maximization and expected utility maximization will be covered. The role of risk aversion in the decision-making process will be discussed along with how it can be measured.

The study of decision analysis will include the use of decision trees. The basic concepts in game theory will be introduced. Students will learn what Nash equilibrium is and how to derive such an equilibrium. More complicated games with incomplete information will be introduced which are important in decision-making where parties often are missing key pieces of information but must still choose a business strategy. Problems of asymmetric information will be studied; these situations arise when one party to a transaction or contract has more information relevant to the decision than the other party. For these types of problems, such as adverse selection and moral hazard, optimal solutions will be discussed.

General Education: None
Diversity: None
Bachelor of Arts: None
Effective: Summer 2011
Prerequisite: R M 301

Note : Class size, frequency of offering, and evaluation methods will vary by location and instructor. For these details check the specific course syllabus.


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Course descriptions are stored in LionPATH, the University-wide student information system. Please visit the LionPATH Course Catalog to access current course descriptions. At that point, you will be leaving the University Bulletin website.

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